CBSE Class 10 Answered

Advancement of a country’s international trade is an index of its economic prosperity because

• International trade is in fact an ‘economic barometer’ of a country. A healthy volume of it ensures a trickling down of prosperity into the macro-economy as well.

• No   country   is   self-sufficient   in   all   resources   or   services.   It   has   to   resort   to international trade in order to satisfy one or the other need of its economy

• If  the  balance  of  international  trade  is  favourable  to  a  country,  it  can  earn  more foreign exchange and hence strengthen its financial position in the market.

• International  trade  induces  a  country  to  develop  secondary  and  tertiary  sectors  for exporting goods which can fetch more foreign exchange

• A country’s economic prosperity can be gauged by the health of its international trade.